Nifty falls for 2nd day…ends below 5550

The Indian equity markets extended the fall for second straight day after RBI’s shocking decision of hiking interest rates by an aggressive 50 bps. Just when we thought that the stock markets would stage a dead cat bounce, there was not respite on Dalal Street. The NSE Nifty lost further 28 points to close at 5546 while the BSE Sensex fell 86 points to end at 18431.



The Nifty has lost nearly 160 points in the last two trading sessions. The Capital Goods, Banking, Realty and Power stocks continued to be under pressure. The Metals and the Oil & Gas were among the other laggards. While, the Consumer Durables, FMCG and the Telecom stocks ended in the green. The BSE Mid-Cap and the Small-Cap stocks were in demand

Weakness was not only seen in India, but also in the European and Asian markets. US stocks extended losses amid no sign of a compromise between the Obama regime and the GOP.

"Technically, the Nifty reversed from its 200 DMA (5709 levels) and has found support at the 50 DMA (5518 levels), below which selling pressure might get aggravated. What’s more, the central bank doesn’t seem to be lowering its guard either. The RBI seems to be ready to sacrifice a little bit of growth in the near term to improve long-term prospects. A further 25-50 bps hike cannot be ruled out. Let’s hope for some big relief on the inflation front", says Amar Ambani, Head of Research, IIFL - India Private Clients.

Finally, the BSE Sensex ended at 18,432 slipping 86 points. It had earlier touched a day's high of 18,578 and a day's low of 18,358. It opened at 18,571. The NSE Nifty closed at 5,546 losing 28 points.